IDEAS home Printed from https://ideas.repec.org/a/fip/fednci/y2010ijannv.16no.1.html
   My bibliography  Save this article

Is the international role of the dollar changing?

Author

Listed:
  • Linda S. Goldberg

Abstract

Facing a shortage of U.S. dollars and a growing need to support their dollar-denominated assets during the financial crisis, international firms increasingly turned to the foreign exchange swap market and other secured funding sources. An analysis of the ensuing strains in the swap market shows that the dollar "basis"--the premium international institutions pay for dollar funding--became persistently large and positive, chiefly as a result of the higher funding costs paid by smaller firms and non-U.S. banks. The widening of the basis underscores the severity and breadth of the crisis as markets designed to facilitate the flow of dollars faltered and institutions worldwide struggled to obtain funds.

Suggested Citation

  • Linda S. Goldberg, 2010. "Is the international role of the dollar changing?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 16(Jan).
  • Handle: RePEc:fip:fednci:y:2010:i:jan:n:v.16no.1
    as

    Download full text from publisher

    File URL: https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci16-1.html
    Download Restriction: no

    File URL: https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci16-1.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Linda S. Goldberg & Eleanor Wiske Dillon, 2007. "Why a dollar depreciation may not close the U.S. trade deficit," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 13(Jun).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kamil Janáček & Luboš Komárek, 2012. "Bude americký dolar nadále dominantní světovou rezervní měnou?
      [Will Us Dollar Continue as the World Most Important Reserve Currency?]
      ," Politická ekonomie, University of Economics, Prague, vol. 2012(1), pages 3-19.
    2. Luna Azahara Romo González, 2016. "The drivers of European banks’ US dollar debt issuance: opportunistic funding in times of crisis?," Working Papers 1611, Banco de España;Working Papers Homepage.
    3. Frankel, Jeffrey, 2012. "Internationalization of the RMB and Historical Precedents," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 27, pages 329-365.
    4. Hale, Galina & Jones, Peter & Spiegel, Mark M., 2014. "The Rise in Home Currency Issuance," Working Paper Series 2014-19, Federal Reserve Bank of San Francisco, revised 04 May 2016.
    5. Liu, Kai & Zhou, Xuan, 2015. "The U.S. Dollar and Global Imbalances," MPRA Paper 64786, University Library of Munich, Germany.
    6. World Bank, 2011. "Global Development Horizons 2011 : Multipolarity - The New Global Economy," World Bank Publications, The World Bank, number 2313.
    7. Riccardo Fiorentini & Guido Montani, 2012. "The New Global Political Economy," Books, Edward Elgar Publishing, number 14443.

    More about this item

    Keywords

    Dollar; American ; Euro ; International finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fednci:y:2010:i:jan:n:v.16no.1. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amy Farber). General contact details of provider: http://edirc.repec.org/data/frbnyus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.